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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
______________

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): February 5, 2026
______________

INTERDIGITAL, INC.
(Exact name of Registrant as Specified in Charter)
Pennsylvania 1-33579 82-4936666
(State or Other Jurisdiction of Incorporation) (Commission File Number) (IRS Employer Identification No.)
200 Bellevue Parkway, Suite 300
Wilmington, DE 19809-3727
(Address of principal executive offices, Zip code)

302-281-3600
Registrant's telephone number, including area code
Not Applicable
Former Name or Former Address, if Changed Since Last Report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class   Trading
Symbol(s)		   Name of each exchange
on which registered
Common Stock, par value $0.01 per share   IDCC   NASDAQ Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02.    Results of Operations and Financial Condition.
On February 5, 2026, InterDigital, Inc. (the "Company") issued a press release announcing its results of operations and financial condition for the fiscal quarter and year ended December 31, 2025. A copy of the press release is attached hereto as Exhibit 99.1.
The information contained in Item 2.02 of this report, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 7.01.    Regulation FD.
The supplemental earnings presentation attached hereto as Exhibit 99.2 is being provided to investors in connection with the Company's earnings announcement.
The information contained in Item 7.01 of this report, including Exhibit 99.2, shall not be deemed "filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference into any filing under the Securities or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01.    Financial Statements and Exhibits.
(d)    Exhibits.
99.1
99.2
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)



SIGNATURES

    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



    
INTERDIGITAL, INC.
By: /s/ Joshua D. Schmidt
Joshua D. Schmidt
Chief Legal Officer and
Corporate Secretary


Date: February 5, 2026



EX-99.1 2 ex9912025q4pressrelease.htm EX-99.1 Document

INTERDIGITAL REPORTS FOURTH QUARTER AND FULL YEAR 2025 FINANCIAL RESULTS
Record year as licensing momentum drives a 24% increase in annualized recurring revenue1
Near-record annual revenue drives all-time record levels of net income, adjusted EBITDA2,
non-GAAP EPS3 and free-cash flow4

WILMINGTON, DE. - February 5, 2026 - InterDigital, Inc. (Nasdaq: IDCC), a wireless, video, and AI technology research and development company, today announced results for the fourth quarter and full year ended December 31, 2025.
"We finished the year with another strong quarter to cap an outstanding performance in 2025," said InterDigital President and CEO, Liren Chen. "Through the year we accelerated momentum across our licensing programs, including a record performance in smartphones; we significantly deepened our AI expertise and industry leadership in our research teams; and we drove double digit growth in our patent portfolio to help us deliver long-term value for shareholders."
Business Highlights for Full Year 2025
•Completed the most valuable license in our history with Samsung, and new license agreements with top-ten smartphone vendors vivo and Honor, as well as HP, the world’s largest PC manufacturer
•Near-record level total revenue of $834.0 million; including record level smartphone revenue of $678.9 million
•Annualized recurring revenue1 ("ARR") increased 24% year-over-year from $468.0 million to $582.4 million
•Record levels of net income of $406.6 million and adjusted EBITDA2 of $588.9 million
•GAAP EPS of $11.80 and record non-GAAP EPS3 of $15.31
•Record levels of net cash provided by operating activities of $544.5 million and free cash flow4 of $473.9 million
•Awarded injunctions against Disney video streaming services by courts in Brazil and Germany
•Grew our patent portfolio 14% to ~38,000 granted patents and patent applications
•Acquired video AI start-up Deep Render
•Recognized by Fortune, Forbes, Newsweek and Time for our growth, financial performance, and business successes
Fourth Quarter and Full Year 2025 Financial Highlights:
Fourth quarter 2025 revenue included $12.6 million of catch-up revenue, compared with $135.8 million in fourth quarter 2024 (primarily related to the 2024 OPPO license agreement and the Lenovo arbitration). The year-over-year decline in catch-up revenue drove lower revenue, EPS, non-GAAP EPS3, and adjusted EBITDA2 in fourth quarter 2025.
Full year 2025 revenue included $277.4 million of catch-up revenue, compared with $460.1 million in full year 2024 (primarily related to the Samsung TV license agreement, the OPPO license agreement and Lenovo matters). Operating expenses decreased $55.8 million year-over-year, mainly due to lower revenue-share costs. Higher recurring revenue, along with the reduction in operating expenses drove higher EPS, non-GAAP EPS3, and adjusted EBITDA2 in full year 2025 versus full year 2024.



Three Months Ended
December 31,
Twelve Months Ended
December 31,
($ in millions, except per share data)
 2025 2024 Change 2025 2024 Change
GAAP Results:
Revenue $158.2 $252.8 (37)% $834.0 $868.5 (4)%
Operating expenses $110.4 $90.3 22% $373.2 $429.0 (13)%
Net income $43.0 $133.1 (68)% $406.6 $358.6 13%
Net income margin 27% 53% (26) ppt 49% 41% 8 ppt
Diluted EPS $1.20 $4.09 (71)% $11.80 $12.07 (2)%
Non-GAAP Results:
Adjusted EBITDA 2
 $88.2 $198.1 (55)% $588.9 $551.0 7%
Adjusted EBITDA margin 2
 56% 78% (22) ppt 71% 63% 8 ppt
Non-GAAP Net income 3
 $65.9 $150.6 (56)% $465.1 $408.9 14%
Non-GAAP EPS 3
 $2.12 $5.15 (59)% $15.31 $14.97 2%
Additional Information:
Revenue by type:
Annualized recurring revenue 1
 $582.4 $468.0 24%
Catch-up revenue $12.6 $135.8 (91)% $277.4 $460.1 (40)%
Revenue by program:
Smartphone $123.4 $230.6 (47)% $678.9 $597.5 14%
CE, IoT/Auto $34.8 $21.8 60% $154.6 $268.7 (42)%
Other $— $0.4 (90)% $0.5 $2.3 (77)%
Return of Capital to Shareholders
(in millions, except per share data)
 Share Repurchases
Dividends Declared
 Total Return
of Capital
Shares Value Per Share Value
Fourth quarter 2025
 0.1 $35.7 $0.70 $18.0 $53.7
Fiscal year 2025
 0.4 $102.3 $2.60 $67.1 $169.4
Convertibility of 2027 Notes
Pursuant to the terms of the Indenture governing InterDigital’s 3.50% Senior Convertible Notes due 2027 (the “Notes”), the Notes are convertible during its calendar quarter ending March 31, 2026. The current conversion rate of the Notes is 12.9041 shares of InterDigital’s Common Stock per $1,000 principal amount of the Notes.
Upon the conversion of any Notes, InterDigital will pay cash up to the aggregate principal amount of the Notes to be converted, and will pay cash, shares of its Common Stock or a combination of cash and shares of its Common Stock for any conversion obligation in excess of the aggregate principal amount being converted, if any, at InterDigital’s election, as set forth in the Indenture governing the Notes.
At the time InterDigital issued the Notes, InterDigital entered into call spread transactions that together were designed to have the economic effect of reducing the net number of shares that will be issued in the event of conversion of the Notes by, in effect, increasing the conversion price of the Notes from InterDigital’s economic standpoint from $77.49 to $105.67. Refer to "Management's Discussion and Analysis of Financial Condition and Results of Operations - Notes, Hedge and Warrant Transactions" in InterDigital’s Form 10-K for the year ended December 31, 2025 for more information.


Near-Term Outlook
The table below presents guidance of the company's current outlook for first quarter and full year 2026. The outlook for first quarter 2026 covers existing licenses and does not include any new agreements or enforcement action results we may sign or receive over the balance of the first quarter. The outlook for full year 2026 includes both existing licenses and the expected contributions from new agreements and/or enforcement actions we may receive over the balance of the year.
(in millions, except per share data)
Q1 2026
Full Year 2026
Revenue $194 - $200 $675 - $775
Adjusted EBITDA 2
 $101 - $110 $381 - $477
Diluted EPS
$1.61 - $1.86 $5.77 - $8.51
Non-GAAP EPS 3
 $2.39 - $2.68 $8.74 - $11.84
Conference Call Information
InterDigital will host a conference call on Thursday, February 5, 2026 at 10:00 a.m. ET to discuss its fourth quarter and full year 2025 financial performance and other company matters.
For a live webcast of the conference call visit www.interdigital.com and click on the “Webcast” link on the Investors page. The company encourages participants to take advantage of the webcast option.
See below for dial-in details to join the call telephonically:
USA - Toll-Free (800) 715-9871
USA / International Toll +1 (646) 307-1963
Conference ID 1851290 or Conference Name
A replay of the conference call will be available on InterDigital’s website under Events in the Investors section. The replay will be available for one year.
About InterDigital®
InterDigital is a global research and development company focused primarily on wireless, video, artificial intelligence (“AI”), and related technologies. We design and develop foundational technologies that enable connected, immersive experiences in a broad range of communications and entertainment products and services. We license our innovations worldwide to companies providing such products and services, including makers of wireless communications devices, consumer electronics, IoT devices, cars and other motor vehicles, and providers of cloud-based services such as video streaming. As a leader in wireless technology, our engineers have designed and developed a wide range of innovations that are used in wireless products and networks, from the earliest digital cellular systems to 5G and today’s most advanced Wi-Fi technologies. We are also a leader in video processing and video encoding/decoding technology, with a significant AI research effort that intersects with both wireless and video technologies. Founded in 1972, InterDigital is listed on Nasdaq.
InterDigital is a registered trademark of InterDigital, Inc.
For more information, visit the InterDigital website: www.interdigital.com.
For additional financial measures, refer to our Annual Report on Form 10-K for the year ended December 31, 2025 and the financial metrics tracker, which are available on the Investor Relations section of our website.


Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include information regarding our current beliefs, plans and expectations. Words such as “believe,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “forecast,” “goal,” “could,” "would," "should," "if," "may," "might," "future," "target," "trend," "seek to," "will continue," "predict," "likely," "in the event," and variations of any such words or similar expressions are intended to identify such forward-looking statements.
Forward-looking statements are made on the basis of management’s current views and assumptions and are not guarantees of future performance. Forward-looking statements, including but not limited to statements regarding our outlook for Q1 and full year 2026, are inherently subject to risks and uncertainties that could cause actual results, and actual events that occur, to differ materially from results contemplated by the forward-looking statements. These risks and uncertainties include, but are not limited to: (i) unanticipated delays or difficulties in the execution of patent license agreements on acceptable terms or at all; (ii) our ability to expand our revenue opportunities by entering into licensing arrangements with streaming and cloud-based service providers; (iii) the resolution of legal proceedings, including any awards or judgments relating to such proceedings, and changes in the schedules or costs associated therewith; (iv) our ability to maintain a strong patent portfolio and make strategic decisions related to our intellectual property protection; (v) our ability to successfully integrate Deep Render and to recognize the anticipated benefits of the transaction; (vi) the failure of markets for our technologies to materialize to the extent that we expect; (vii) our continued ability to develop new technologies; (viii) changes in our interpretations of, and assumptions and calculations with respect to the impact on us of, the One Big Beautiful Bill Act, the 2017 Tax Cuts and Jobs Act and other U.S. and non-U.S. tax laws and other tax matters; (ix) the timing and impact of potential regulatory, administrative and legislative matters; (x) the potential effects of macroeconomic conditions or trade conflicts; (xi) our ability to hire and retain key personnel; (xii) operational risks, including cybersecurity events, human failures or other difficulties with our information technology systems; and (xiii) risks related to any new accounting standards or our assumptions and application of relevant accounting standards, including with respect to revenue recognition.

You should not place undue reliance on the forward-looking statements contained herein, which are made only as of the date of this release. We undertake no duty to revise or update publicly any forward-looking statement for any reason, except as otherwise required by law.


Footnotes
1    Annualized recurring revenue ("ARR") for any quarter is defined as total revenue for the quarter less catch-up revenue for the quarter, multiplied by four. Management believes ARR provides useful information about our financial performance, and our progress toward our 2030 targets. ARR is not a projection or forecast, and actual recurring revenue for any 12-month period will depend on a number of factors beyond our ability to predict or control, including those risks and uncertainties listed above. Additionally, ARR may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.
2    Adjusted EBITDA and Adjusted EBITDA margin are supplemental non-GAAP financial measures that InterDigital believes provide investors with important insight into the Company's ongoing business performance. InterDigital defines Adjusted EBITDA as net income attributable to InterDigital Inc. plus net loss attributable to non-controlling interest, income tax (provision) benefit, other income (expense) & interest expense, depreciation and amortization, share-based compensation, and other items. Other items include restructuring costs, impairment charges and other non-recurring items. Adjusted EBITDA margin is Adjusted EBITDA over total revenue. These non-GAAP financial measures used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. The presentation of these financial measures, which are not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. A reconciliation of Adjusted EBITDA to the most directly comparable GAAP financial measure is provided below.
3    Non-GAAP net income, Non-GAAP EPS, and Non-GAAP weighted-average diluted shares are supplemental non-GAAP financial measures that InterDigital believes provides investors with important insight into the Company's ongoing business performance. InterDigital defines Non-GAAP net income as net income attributable to InterDigital, Inc. plus share-based compensation, acquisition related amortization, depreciation and amortization, restructuring costs, impairment charges and one-time adjustments, losses on extinguishments of long-term debt, the related income tax effect of the preceding items, and adjustments to income taxes. Non-GAAP EPS is defined as Non-GAAP net income divided by Non-GAAP weighted average diluted shares, which adjusts the weighted-average number of common shares outstanding for the dilutive effect of the Company's convertible notes, offset by our hedging arrangements. InterDigital’s computation of these non-GAAP financial measures might not be comparable to similarly named measures reported by other companies. The presentation of these financial measures, which are not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. A reconciliation of each of these metrics to its most directly comparable GAAP financial measure is provided below.
4    Free cash flow is a supplemental non-GAAP financial measure that InterDigital believes is helpful in evaluating the company’s ability to invest in its business, make strategic acquisitions and fund share repurchases, among other things. A limitation of the utility of free cash flow as a measure of financial performance is that it does not represent the total increase or decrease in the company’s cash balance for the period. InterDigital defines free cash flow as net cash provided by (used in) operating activities less purchases of property and equipment and capitalized patent costs. InterDigital’s computation of free cash flow might not be comparable to free cash flow reported by other companies. The presentation of free cash flow, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. A reconciliation of free cash flow to net cash provided by (used in) operating activities, the most directly comparable GAAP financial measure, is provided below.



CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share data)
(unaudited)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2025 2024 2025 2024
Revenue $ 158,230  $ 252,802  $ 834,015  $ 868,516 
Operating expenses:  
Research and portfolio development 57,260  49,052  211,432  196,903 
Licensing 32,341  20,027  93,642  169,239 
General and administrative 20,843  21,197  68,088  62,862 
Total operating expenses 110,444  90,276  373,162  429,004 
Income from operations 47,786  162,526  460,853  439,512 
Interest expense (10,535) (11,335) (39,962) (45,421)
Other income, net 12,951  1,842  48,541  35,325 
Income before income taxes 50,202  153,033  469,432  429,416 
Income tax provision (7,231) (19,925) (62,788) (70,802)
Net income $ 42,971  $ 133,108  $ 406,644  $ 358,614 
Net income per common share:
Basic $ 1.67  $ 5.23  $ 15.77  $ 14.16 
Diluted $ 1.20  $ 4.09  $ 11.80  $ 12.07 
Weighted average number of common shares outstanding:
Basic 25,724  25,438  25,794  25,325 
Diluted 35,745  32,561  34,474  29,711 
Cash dividends declared per common share $ 0.70  $ 0.45  $ 2.60  $ 1.70 



SUMMARY CONSOLIDATED CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2025 2024 2025 2024
Cash flows from operating activities:
Net income $ 42,971  $ 133,108  $ 406,644  $ 358,614 
Non-cash adjustments (37,786) (4,150) 69,892  82,283 
Working capital changes 58,206  63,076  67,914  (169,369)
Net cash provided by operating activities 63,391  192,034  544,450  271,528 
Cash flows from investing activities:
Net (purchases), maturities, and sales of short-term investments (78,925) (16,548) (60,600) 156,660 
Capitalized patent costs and property and equipment     (15,253) (23,303) (70,515) (58,737)
Acquisitions
 (8,750) (4,250) (8,750) (4,250)
Long-term investments (415) 14,202  (415) 15,778 
Net cash (used in) provided by investing activities (103,343) (29,899) (140,280) 109,451 
Cash flows from financing activities:
Payments on long-term debt and warrants (199) (2,391) (1,497) (141,460)
Repurchase of common stock (35,650) —  (102,319) (66,726)
Dividends paid (18,041) (11,374) (60,682) (41,799)
Other (520) (7,603) (36,951) (22,408)
Net cash used in financing activities (54,410) (21,368) (201,449) (272,393)
Net (decrease) increase in cash, cash equivalents and restricted cash (94,362) 140,767  202,721  108,586 
Cash, cash equivalents, and restricted cash, beginning of period
 848,630  410,780  551,547  442,961 
Cash, cash equivalents, and restricted cash, end of period
 $ 754,268  $ 551,547  $ 754,268  $ 551,547 



SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
December 31, 2025
December 31, 2024
Assets    
Cash, cash equivalents, and short-term investments $ 1,243,160  $ 958,208 
Accounts receivable
 69,816  188,302 
Prepaid and other current assets 74,994  84,312 
Property & equipment and patents, net 342,469  327,174 
Other long-term assets, net 333,851  277,533 
Total assets $ 2,064,290  $ 1,835,529 
Liabilities and Shareholders' equity  
Current portion of long-term debt $ 458,376  $ 456,329 
Current deferred revenue 193,722  178,009 
Other current liabilities 100,404  91,472 
Long-term deferred revenue 135,882  182,119 
Long-term debt & other long-term liabilities 74,786  70,385 
Total liabilities 963,170  978,314 
Total shareholders' equity 1,101,120  857,215 
Total liabilities and shareholders' equity $ 2,064,290  $ 1,835,529 




RECONCILIATION OF NON-GAAP MEASURES

The following tables present InterDigital's GAAP financial measures reconciled to the non-GAAP financial measures included in this release for the fourth quarter and full year periods ended December 31, 2025 and 2024:
Three Months Ended
December 31,
Twelve Months Ended
December 31,
(in thousands)
(in thousands)
2025 2024 2025 2024
Net income $ 42,971  $ 133,108  $ 406,644  $ 358,614 
Income tax provision 7,231  19,925  62,788  70,802 
Other income, net & interest expense (2,416) 9,493  (8,579) 10,096 
Depreciation and amortization 20,049  17,748  77,531  69,913 
Share-based compensation 12,521  17,844  43,156  45,966 
Other items(a)
 7,859  —  7,376  (4,361)
Adjusted EBITDA 2
 $ 88,215  $ 198,118  $ 588,916  $ 551,030 
Three Months Ended
December 31,
Twelve Months Ended
December 31,
(in thousands, except for per share data)
(in thousands, except for per share data)
2025 2024 2025 2024
Net income $ 42,971  $ 133,108  $ 406,644  $ 358,614 
Share-based compensation 12,521  17,844  43,156  45,966 
Acquisition related amortization 9,072  8,345  35,680  33,372 
Other operating items (a)
7,859  —  7,376  (4,361)
Other non-operating items (b)
 —  (201) —  (1,989)
Related income tax and noncontrolling interest effect of above items (6,185) (5,457) (18,105) (15,327)
Adjustments to income taxes (332) (3,067) (9,669) (7,337)
Non-GAAP net income 3
 $ 65,906  $ 150,572  $ 465,082  $ 408,938 
Weighted average diluted shares - GAAP
 35,745  32,561  34,474  29,711 
Less: Dilutive impact of the Convertible Notes 4,674  3,321  4,103  2,393 
Weighted average diluted shares - Non-GAAP 3
 31,071  29,240  30,371  27,318 
Diluted EPS $ 1.20  $ 4.09  $ 11.80  $ 12.07 
Non-GAAP EPS 3
 $ 2.12  $ 5.15  $ 15.31  $ 14.97 
(a) Other items in the above tables include one-time expenses related to severance costs from executive and non-executive departures, litigation fee reimbursement, and costs associated with the acquisition of Deep Render for the three months and twelve months ended December 31, 2025. The twelve months ended December 31, 2024 includes one-time contra-expenses of related to litigation fee reimbursements.
(b) Other non-operating items includes losses from observable price changes of our long-term strategic investments.


Three Months Ended
December 31,
Twelve Months Ended
December 31,
(in thousands)
(in thousands)
2025 2024 2025 2024
Net cash provided by operating activities
 $ 63,391  $ 192,034  $ 544,450  $ 271,528 
Purchases of property and equipment
 (217) (3,921) (15,888) (5,849)
Capitalized patent costs
 (15,036) (19,382) (54,627) (52,888)
Free cash flow 4
 $ 48,138  $ 168,731  $ 473,935  $ 212,791 
The following tables present a reconciliation between GAAP and non-GAAP versions of the estimated financial measures for the first quarter of 2026 and full year fiscal 2026 included in this release:
Outlook
(in millions)
Q1 2026
Full Year 2026
Net income $57 - $66 $202 - $298
Income tax provision 12 48
Other income, net & interest expense
 —  (4)
Depreciation and amortization 19 80
Share-based compensation 12 52
Other items
 1  3 
Adjusted EBITDA 2
 $101 - $110 $381 - $477
Outlook
(in millions, except for per share data)
Q1 2026
Full Year 2026
Net income
$57 - $66
 $202 - $298
Share-based compensation 12  52 
Acquisition related amortization 8  32 
Other operating items
 1  3 
Other non-operating items
—  — 
Related income tax effect of above items
 (4) (18)
Adjustments to income taxes —  — 
Non-GAAP net income 3
$74 - $83
 $271 - $367
Weighted average dilutive shares - GAAP 35.4  35.0 
Less: Dilutive impact of the Convertible Notes 4.4  4.0 
Weighted average dilutive shares - Non-GAAP 3
 31.0  31.0 
Diluted EPS
$1.61 - $1.86
 $5.77 - $8.51
Non-GAAP EPS 3
$2.39 - $2.68
 $8.74 - $11.84



CONTACT: InterDigital, Inc.
investor.relations@interdigital.com
 +1 (302) 300-1857


EX-99.2 3 supplementalmaterialsq42.htm EX-99.2 supplementalmaterialsq42




Disclaimers Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 21E of the Exchange Act, including but not limited to statements related to our outlook for Q1 and full year 2026, and other financial and business goals. Forward-looking statements are based on our expectations as of the date of this presentation and are subject to a number of risks, uncertainties and assumptions, many of which involve factors or circumstances that are beyond our control. Actual results could materially differ because of such factors or circumstances, which include those described in our fourth quarter 2025 earnings release. You should carefully consider these factors as well as the risks and uncertainties outlined in greater detail in the Risk Factors sections of our 2025 Form 10-K and our other SEC filings before making any investment decision with respect to our common stock. These factors, individually or in the aggregate, may cause our actual results to differ materially from our expected and historical results. We undertake no obligation to revise or update publicly any forward-looking statement for any reason, except as otherwise required by law. Industry Data This presentation contains statistical data, estimates, and forecasts that are based on independent industry publications or other publicly available information, as well as other information based on our internal sources. While we believe the industry and market data included in this presentation are reliable and are based on reasonable assumptions, these data involve many assumptions and limitations, and you are cautioned not to give undue weight to these estimates. We have not independently verified the accuracy or completeness of the data contained in these industry publications and other publicly available information. Non-GAAP Financial Measures This presentation includes certain non-GAAP measures not based on generally accepted accounting principles. For more information and for reconciliations between GAAP and these non-GAAP measures, see the appendix to this presentation. 2©2026 InterDigital, Inc. All Rights Reserved.

 
Agenda Q4 Financial & Business Highlights FY25 Financial & Business Highlights Q1 and FY26 Outlook Background on InterDigital Appendix 3©2026 InterDigital, Inc. All Rights Reserved.

 




Q4 Financial Highlights  Revenue, Adj. EBITDAa and Diluted EPS exceed the top end of guidance range  Annualized Recurring Revenueb (ARR) up 24% YoY to $582 million  Smartphone ARRb up 29% to $491 million (all-time high)  Adj. EBITDAa of $88 million  Adj. EBITDA margina of 56%  Free cash flowa of $48 million  Return of capital of $54 million, including $36 million of share repurchases a Non-GAAP Measure / Please see appendix for GAAP to Non-GAAP reconciliations b Please see appendix for a description of this metric and how it is calculated 5©2026 InterDigital, Inc. All Rights Reserved.

 
Recent Business Highlights  Renewed our license with Xiaomi  Signed a new license with LG Electronics covering digital TVs and computer display monitors  Signed a new CE device license agreement with a significant social media company  Awarded two injunctions against Disney by a court in Germany  Launched enforcement proceedings against Amazon  Named America’s #1 most successful mid-cap company by Forbes 6©2026 InterDigital, Inc. All Rights Reserved.

 
Q1’26 License Agreement With LG Electronics  Multi-year agreement licenses LG’s digital TVs and computer display monitors  LG is one of the world’s largest TV manufacturers  Agreement reached through bilateral negotiation under InterDigital’s joint licensing program with Sony  Technologies covered include ATSC 3.0, Wi-Fi and certain video codecs  Catch-up revenue of $57 million to be recognized in Q1 7©2026 InterDigital, Inc. All Rights Reserved.

 
Financial Results vs. Outlook Q 4 ’ 2 5 R E S U L T S Q 4 ’ 2 5 O U T L O O K Revenue $158.2M $144M - $148M Adjusted EBITDAa $88.2M $68M - $76M Diluted EPS $1.20 $0.72 - $0.95 Non-GAAP EPSa $2.12 $1.38 - $1.63 aNon-GAAP Measure / Please see appendix for GAAP to Non-GAAP reconciliations, as well as our 2025 10-K for a sensitivity table showing the dilutive impact of our convertible notes. 8©2026 InterDigital, Inc. All Rights Reserved.

 
ARRa +24% YoY Q4’25 Results Q4’25 revenue included $12.6 million of catch-up revenue, compared with $135.8 million in Q4’24 The decline in catch-up revenue drove lower Revenue, Non-GAAP EPSb and Adjusted EBITDAb in Q4’25 ©2026 InterDigital, Inc. All Rights Reserved. 9 0 100 200 300 400 500 600 700 Q4 ‘24 Q4 ‘25 $395M $582M Ce, IoT/Auto Smartphone $253M $158M 0 100 200 300 Q4 ‘24 Q4 ‘25 Revenue <37> % YoY $198M $88M 78% 56% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0 100 200 300 Q4 ‘24 Q4 ‘25 Adjusted EBITDAb <55%> YoY $5.15 $2.12 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0 Q4 ‘24 Q4 ‘25 Non-GAAP EPSb <59%> YoY - - - - - -Adj EBITDA Marginb a Please see appendix for a description of this metric and how it is calculated b Non-GAAP financial measure. Refer to non-GAAP reconciliation in appendix, as well as our 2025 10-K for a sensitivity table showing the dilutive impact of our convertible notes. $468M

 




 Revenue of $834 million  Annualized Recurring Revenuea (ARR) of $582 million, up 24% YoY  Record Adj. EBITDAb of $589 million  Adj. EBITDA marginb of 71%, up 8 ppt YoY  Record non-GAAP EPSb of $15.31  Record free cash flowb of $474 million  Cash balance of $1.2 billion  Return of capital of $169 million a Please see appendix for a description of this metric and how it is calculated b Non-GAAP Measure / Please see appendix for GAAP to Non-GAAP reconciliations, as well as our 2025 10-K for a sensitivity table showing the dilutive impact of our convertible notes©2026 InterDigital, Inc. All Rights Reserved. FY25 Financial Highlights 11

 
FY25 Business Highlights  Completed the most valuable license in our history with Samsung  Signed new license agreements with top-ten smartphone vendors vivo and Honor, as well as HP, the world’s largest PC manufacturer  Grew our patent portfolio 14% to ~38,000 granted patents and pending applications  Acquired video AI start-up Deep Render  Awarded injunctions against Disney by courts in Brazil and Germany  Appointed Julia Mattis to Chief Licensing Officer  Recognized by Fortune, Forbes, Newsweek and Time as one of America’s most successful companies 12©2026 InterDigital, Inc. All Rights Reserved.

 
ARRa +24% YoY FY25 Results FY25 revenue included $277.4 million of catch-up revenue, compared with $460.1 million in FY24 ©2026 InterDigital, Inc. All Rights Reserved. 13 0 100 200 300 400 500 600 700 FY24 FY25 $395M $582M Ce, IoT/Auto Smartphone $869M $834M 0 100 200 300 400 500 600 700 800 900 1,000 FY24 FY25 Revenue <4%> YoY $551M $589M 63% 71% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0 100 200 300 400 500 600 700 800 900 1,000 FY24 FY25 Adjusted EBITDAb +7% YoY $14.97 $15.31 0.0 5.0 10.0 15.0 20.0 FY24 FY25 Non-GAAP EPSb +2% YoY - - - - - -Adj EBITDA Marginb $468M a Please see appendix for a description of this metric and how it is calculated b Non-GAAP financial measure. Refer to non-GAAP reconciliation in appendix, as well as our 2025 10-K for a sensitivity table showing the dilutive impact of our convertible notes.

 




Q1’26 and FY26 Outlook (as of February 5, 2026) 15 Q 1 ’ 2 6 O U T L O O K F Y 2 6 O U T L O O K Revenue $194M - $200M $675M - $775M Adjusted EBITDAa $101M - $110M $381M - $477M Diluted EPS $1.61 - $1.86 $5.77 - $8.51 Non-GAAP EPSa $2.39 - $2.68 $8.74 - $11.84 a Non-GAAP Measure / Please see appendix for GAAP to Non-GAAP reconciliations, as well as our 2025 10-K for a sensitivity table showing the dilutive impact of our convertible notes. The outlook for first quarter 2026 covers existing licenses and does not include any new agreements or enforcement action results we may sign or receive over the balance of the first quarter. The outlook for full year 2026 includes both existing licenses and the expected contributions from new agreements and/or enforcement actions we may receive over the balance of the year. ©2026 InterDigital, Inc. All Rights Reserved.

 
Upcoming Investor Events ©2025 InterDigital, Inc. All Rights Reserved. 16 March 18-19 Sidoti Conference Virtual March 23 Roth Conference Dana Point, CA

 




Premier Team Essential Technology Development Company Introduction Long-term Growth Strategy Accelerating Business Momentum 01 0304 0205 InterDigital Innovating Today, Empowering Tomorrow 18©2026 InterDigital, Inc. All Rights Reserved.

 
InterDigital Pioneering Wireless, Video and AI Research 19©2026 InterDigital, Inc. All Rights Reserved. 71% Adj. EBITDA Margina KEY CUSTOMERS INCLUDE: ~$1.2B Cash 2025 F inancial Resul ts $834M Revenue H I G H L I G H T S Driving foundational research in wireless, video & AI since 1972 World-class team Led by seasoned industry veterans Enabling ecosystem Over two billion devices and $5.7T economic value annually Industry-leading patents Evergreen patent portfolio of ~38,000 assets Long-term customers Subscription-like revenue, > $4.6B+ in TCV* added since the start of 2021 *TCV = total contract value a Non-GAAP financial measure. Refer to non-GAAP reconciliation in appendix, as well as our 2025 10-K for a sensitivity table showing the dilutive impact of our convertible notes. $15.31 Non-GAAP EPSa

 
Rich Brezski CFO Julia Mattis Chief Licensing Officer 20©2026 InterDigital, Inc. All Rights Reserved. World-Class Leadership Team Robert S. Stien Chief Communications & Public Policy Officer Ken Kaskoun Chief Growth Officer Joshua Schmidt Chief Legal Officer Skip Maloney Chief People Officer Liren Chen CEO Rajesh Pankaj CTO Decades of industry experience. Strong track record. Drive deep collaboration and superb execution

 
21©2026 InterDigital, Inc. All Rights Reserved. IP as a Service Business Model: A Virtuous Cycle of Innovation We are a foundational R&D company. We share our innovation through the standards process and monetize our technology through IP licensing. $ RESEARCH & INNOVATION PATENT PORTFOLIO LICENSING PRODUCT IMPLEMENTERS STANDARD DEVELOPMENT TECHNOLOGY SHARING

 
22©2026 InterDigital, Inc. All Rights Reserved. We Focus on Foundational Technologies We solve the most complex problems in the system. The technology we created is broadly applicable to many industries W I R E L E S S Cellular wireless - 4G/5G/6G WiFi and wireless local area networks V I D E O Video compression, transport and enhancement Immersive media compression, transport and enhancement A I AI/ML research to deliver next gen wireless and video technologies and services AI/ML innovation to boost performance, save energy, and enable new use cases Our research and patents in these areas underpin our business

 
23©2026 InterDigital, Inc. All Rights Reserved. InterDigital Tech Underpins Surging Mobile Traffic 2017 2022 2027 50 100 150 200 250 3000 10.8 EB 90.4 EB 282.8 EB Video Drives Surge in Mobile Data Traffic Estimated global media traffic by application category (in exabytes per month)* * One exabyte equals one million terabytes. Source: Ericsson Mobility Report Video Other

 
24©2026 InterDigital, Inc. All Rights Reserved. Our Innovations Help Drive Video Codec Evolution 4K Movie 130-Minute Run Time (1) http://www.iam-media.com/litigation/what-will-tv-cost-you-putting-price-hevc-licences (2) Approximated based on the result from 3GPP document https://www.3gpp.org/ftp/Specs/archive/26_series/26.955/26955-h00.zip Source: Counterpoint, WINXDVD Uncompressed: 11,600GB Compressed VP9: ~15 GB HEVC: ~14 GB(1) AV1: ~11 GB VVC: ~9 GB(2) AVC: ~24 GB(1)

 
25©2026 InterDigital, Inc. All Rights Reserved. The Power of the Global Standards System C O N S U M E R S A global system of standards helps ensure interoperability I M P L E M E N T E R S Standards like 5G lower barriers to entry for new entrants into a market like smartphones and benefit from economies of scale O P E R A T O R S A N D S E R V I C E P R O V I D E R S Standards increase system capacity and lower the total cost of ownership

 
26©2026 InterDigital, Inc. All Rights Reserved. InterDigital Drives Standard Development U N I T I N G P R I N C I P L E S Strong belief in global standards Focus on technology merits and neutral on product implementation decisions S T R O N G L E A D E R S H I P Participate in 100+ standard development organizations (SDO) Hold more than 100 leadership positions in these SDOs B R O A D C O L L A B O R A T I O N S Collaborate with many industry partners and leading universities Our technologies benefit the whole eco-system: billions of devices and many cloud-based services each year

 
©2026 InterDigital, Inc. All Rights Reserved. 27 JVT Video & AI Standards NNVC Co-Chair & SW Chair Beyond VVC Co-Chair of Two AHG Beyond VVC Co-Chair of Two AHG AI AHG Co-Chair AI-PCC Chair Haptic AHG Chair Steering Board Member TSAG Vice Chair MPEG Green Chair Ultra HD Forum Board Member SMPTE 25CSS & 32NF80 TLXDG Committee Chair We Have Many Standard Development Leadership Positions Cellular, WiFi & AI Standards RAN2 Chair SA6 Chair ETSI Board Member ISAC ISG Chair Member FCC CSRIC IX – 6G Security Working Group SAI Vice Chair Steering Group Co-Chair Technology Roadmap Vice- Chair SA Board of Governors Policy & Procedures C/SAB Chair AIML Standing Committee Chair Internet WG Vice Chair Policy Committee Vice Chair Sphere of Influence Growing: More than 100 Leadership Positions in Wireless, Video & AI Standards NNVC Co-Chair & SW Chair AI AHG Co-Chair AI-PCC Chair AI-Related Positions

 
28©2026 InterDigital, Inc. All Rights Reserved. One Of Only Three Companies with Multiple 3GPP Chair Positions Radio Access Network (RAN) WG1 Radio Layer1 WG2 Radio Layer 2/3 WG3 Architecture & Related Network Interfaces WG4 Radio Performance & Protocol Aspects WG5 Mobile Terminal Conformance Test Services & System Aspects (SA) WG1 Services WG2 System Architecture WG3 Security WG4 Codec WG5 Telecom Management WG6 Mission-critical Apps Core Network & Terminals (CT) WG1 User Equipment To Core Network Protocols WG3 Interworking With External Networks WG4 Core Network Protocols WG6 Smart Card Application Aspects

 
29©2026 InterDigital, Inc. All Rights Reserved. InterDigital is a Recognized Global Innovation Leader For the fourth year in a row, LexisNexis recognized InterDigital amongst the World’s 100 Most Innovative Businesses. Innovation Momentum 2025: The Global Top 100, “represents the world’s leading patent owners with the highest innovation momentum.” 2022: 2023: 2024: 2025:

 
Innovation Engine Fuels Evergreen IP Portfolio Cellular WiFi Video Other ~19,000 Assets ~38,000 Assets Our patent portfolio grew > 100% between 2017 & 2025 with the addition of video & DTV related technologies and continuing growth of wireless assets Growing by about 7 new patents/day 2017: 2025: ©2026 InterDigital, Inc. All Rights Reserved. 30

 




$0M $500M $1,000M $1,500M $2,000M $2,500M $3,000M $3,500M $4,000M $4,500M $5,000M ©2026 InterDigital, Inc. All Rights Reserved. Licensing Momentum Drives Total Contract Value (TCV) Growth More than 50 licenses with TCV > $4.6B closed since the start of 2021 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 32 2 0 2 6

 
©2026 InterDigital, Inc. All Rights Reserved. Licensing Success Drives ARRa Growth a Please see appendix for a description of this metric and how it is calculated 33 New Agreements and Renewals Drive Increase in ARRa $450M $500M $550M $600M $0M 2021 2022 2023 2024 2025 $406M $582M

 
$208M $255M $345M $551M $589M 49% 56% 63% 63% 71% 0% 10% 20% 30% 40% 50% 60% 70% 80% $0M $200M $400M $600M $800M $1,000M 2021 2022 2023 2024 2025 Strong Revenue Growth, Margins and Return of Capital Non-GAAP EPSa > 4X growth - - - - - -Adj EBITDA Margina Revenue ~2x growth Adjusted EBITDA ~3X growth a a Non-GAAP financial measure. Refer to non-GAAP reconciliation in appendix, as well as our 2025 10-K for a sensitivity table showing the dilutive impact of our convertible notes. $425M $458M $550M $869M $834M 2021 2022 2023 2024 2025 Return of Capital >$2B cumulative since 2011 $3.73 $5.08 $9.23 $14.97 $15.31 2021 2022 2023 2024 2025 $0M $500M $1,000M $1,500M $2,000M $2,500M 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 ©2026 InterDigital, Inc. All Rights Reserved. Repurchases Dividends 34

 
35©2026 InterDigital, Inc. All Rights Reserved. Recognized As One Of America’s Best Companies America’s Greatest Companies 2025 100 Fastest- Growing Compaines 2025 Newsweek Fortune Time Magazine America’s Growth Leaders 2025 Forbes America’s Best Mid-Cap Companies 2026 #1

 




37©2026 InterDigital, Inc. All Rights Reserved. Our Technologies Benefit the Economy and the World Source: GSMA The Mobile Economy 2024 5.6 billion people globally subscribed to a mobile service, including 4.7 billion who used the mobile internet Mobile technologies and services generate $5.7 trillion economic value, 5.4% of global GDP Enables 35 million jobs across the wider mobile ecosystem 5G is projected to add nearly $1 trillion to the global economy in 2030

 
38©2026 InterDigital, Inc. All Rights Reserved. We Address Three Attractive Markets Sources: Counterpoint Research, Omdia 1 –Wholesale revenue 2 – CE and Cellular IoT only; Auto excluded 3 – SVoD + AVoD revenue Market 2025E TAM Key Market Dynamic ’25 – ’29E CAGR Significant Customers CONTENT & CLOUD SERVICES ~$475B3 High growth with increasing focus on profitability ~10% <20 CE, IoT/AUTO ~1.8B Units (~$440B)2 ~4% ~100 ~1.2B Units (~$460B)1 Increasing concentration of top OEMs SMARTPHONES ~2% <10 Mix of mature and growth with fragmentation across certain verticals

 
39©2026 InterDigital, Inc. All Rights Reserved. Clear Pathway to Growth Q4-2025 2030 SMARTPHONE I n c r e a s e p e n e t r a t i o n E n h a n c e v a l u a t i o n d u r i n g r e n e w a l s CE, IOT/AUTO I n c r e a s e p e n e t r a t i o n E x p a n d m a r k e t c o v e r a g e S T R E A M I N G & C L O U D S E R V I C E S G r o w v i d e o s e r v i c e s l i c e n s i n g p r o g r a m $91M ~$200M $0 ~$300M+ $1B+ A R R a T a r g e t 2030 (by 2027) $491M ~$500M a Please see appendix for a description of this metric and how it is calculated

 
Strong Execution Drives High Penetration Primary Opportunity Licensed1 Long Tail 1. Lenovo in binding arbitration Licensing coverage: ~85% • Top 3 vendors under license until end of decade • 8 of top 10 under license • Large global market, projected at 2% CAGR thru ‘29 • Focus on driving higher value from key customers during renewal cycle 2 0 2 5 S M A R T P H O N E S H I P M E N T S : ~ 1 . 2 B Source: Counterpoint Research 40©2026 InterDigital, Inc. All Rights Reserved. 51% 28% 17% ~85% ~4% ~8% In Litigation

 
Good Momentum in CE - Large Opportunity Remains Licensed Note: Figures represent 2025 estimated shipments Source: Omdia P C s & T A B L E T S : ~ 3 8 0 M T V s : ~ 2 1 0 M Primary Opportunity Long Tail License coverage based on HEVC ~65%~20% ~15% ~20% ~65% ~15% 41©2026 InterDigital, Inc. All Rights Reserved.

 
42©2026 InterDigital, Inc. All Rights Reserved. Strong Growth Opportunity in Automotive and IoT Sources: Counterpoint Research, Omdia 2025E 2029E ~65 ~85 P A S S E N G E R V E H I C L E S H I P M E N T S ( M ) 5G 4G CAGR ~8% ~85% of 4G auto market licensed 5G auto market driving value growth C E L L U L A R I O T S H I P M E N T S ( M ) 2025E 2029E ~550 ~800 Unaddressed Addressed Energy & Utilities Remote Monitoring Retail & Payments Transportation & Logistics Automotive Consumer Healthcare Industrial IoT Smart Cities CAGR ~10%

 
43©2026 InterDigital, Inc. All Rights Reserved. SVoD and AVoD Are Our Initial Focus Source: Omdia 2025 TAM 2029 TAM TAM CAGR $305B$170B $205 B $170 B $160 B $18 B $21 B $5 B $6 B +12% +5% -1% SVoD AVoD GLOBAL PAY-TV VIDEO CONFERENCING CLOUD GAMING $475 B +4% +5%

 
44©2026 InterDigital, Inc. All Rights Reserved. Capital Allocation Priorities Strong cash flow maintains balance sheet strength, funds organic investment in research, and enables significant share reduction Maintain fortress balance sheet Financial strength is a strategic asset Organic investment in business Prioritize investment into research and IP portfolio Inorganic investment Opportunistic and strategic Return Excess cash to shareholders > $1.4B in share repurchases since ‘11 Dividend increase of 56% in 2025

 
45©2026 InterDigital, Inc. All Rights Reserved. Target Financial Model for 2030 60%+ Powerful Operating Leverage drives Adjusted EBITDA Marginb Target $1B+ ARRa 10%+ Annual Growth Target High Margin Drives Strong Cash Flow $600M+ Adjusted EBITDAb Target Well positioned to drive value going forward a Please see appendix for a description of this metric and how it is calculated b Non-GAAP financial measure. Refer to appendix. Calculated based on an assumed 60% Adjusted EBITDA margin.

 
46©2026 InterDigital, Inc. All Rights Reserved. Key Takeaways World-class leadership and functional teams across the board Accelerating momentum for R&I, standard development, patent portfolio creation and licensing driven by continuing investment and strong execution We have a clear strategy, a world-class team and the operational discipline to drive the growth of ARRa to $1B+ target by 2030 Our technologies are critical to devices and services of multiple industries, giving us large addressable markets a Please see appendix for a description of this metric and how it is calculated

 




48©2026 InterDigital, Inc. All Rights Reserved. Supplemental Metrics Annualized recurring revenue ("ARR") for any quarter is defined as total revenue for the quarter less catch-up revenue for the quarter, multiplied by four. Management believes ARR provides useful information about our financial performance, and our progress toward our 2030 targets. ARR is not a projection or forecast, and actual recurring revenue for any 12-month period will depend on a number of factors beyond our ability to predict or control, including those risks and uncertainties listed above. Additionally, ARR may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. Adjusted EBITDA and Adjusted EBITDA margin are supplemental non-GAAP financial measures that InterDigital believes provide investors with important insight into the Company's ongoing business performance. InterDigital defines Adjusted EBITDA as net income attributable to InterDigital Inc. plus net loss attributable to non-controlling interest, income tax (provision) benefit, other income (expense) & interest expense, depreciation and amortization, share-based compensation, and other items. Other items include restructuring costs, impairment charges and other non-recurring items. Adjusted EBITDA margin is Adjusted EBITDA over total revenue. These non-GAAP financial measures used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. The presentation of these financial measures, which are not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. A reconciliation of Adjusted EBITDA to the most directly comparable GAAP financial measure is provided below. Free cash flow is a supplemental non-GAAP financial measure that InterDigital believes is helpful in evaluating the company’s ability to invest in its business, make strategic acquisitions and fund share repurchases, among other things. A limitation of the utility of free cash flow as a measure of financial performance is that it does not represent the total increase or decrease in the company’s cash balance for the period. InterDigital defines free cash flow as net cash provided by (used in) operating activities less purchases of property and equipment and capitalized patent costs. InterDigital’s computation of free cash flow might not be comparable to free cash flow reported by other companies. The presentation of free cash flow, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. A reconciliation of free cash flow to net cash used in operating activities, the most directly comparable GAAP financial measure, is provided below. Non-GAAP net income, Non-GAAP earnings per share (“EPS”), and Non-GAAP weighted-average diluted shares are supplemental non-GAAP financial measures that InterDigital believes provides investors with important insight into the Company's ongoing business performance. InterDigital defines Non-GAAP net income as net income attributable to InterDigital, Inc. plus share-based compensation, acquisition related amortization, depreciation and amortization, restructuring costs, impairment charges and one-time adjustments, losses on extinguishments of long-term debt, the related income tax effect of the preceding items, and adjustments to income taxes. Non- GAAP EPS is defined as Non-GAAP net income divided by Non-GAAP weighted-average diluted shares, which adjusts the weighted average number of common shares outstanding for the dilutive effect of the Company's convertible notes, offset by our hedging arrangements. InterDigital’s computation of these non-GAAP financial measures might not be comparable to similarly named measures reported by other companies. The presentation of these financial measures, which are not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. A reconciliation of each of these metrics to its most directly comparable GAAP financial measure is provided below.

 
Non-GAAP Reconciliation 49©2026 InterDigital, Inc. All Rights Reserved. (In millions) 2021 2022 2023 2024 2025 Q4'25 Q4'24 Q4'25 Q1'26 Full Year 2026 Net income attributable to InterDigital, Inc. 55$ 94$ 214$ 359$ 407$ 43$ 133$ $26 - $34 $57 - $66 $202 - $298 Net loss attributable to non-controlling interest (13) (2) (3) - - - - - - - Income tax (provision) benefit 15 26 24 71 63 7 20 8 12 48 Other income (expense) & interest expense 14 33 (13) 10 (9) (2) 9 - - (4) Depreciation and amortization 78 79 78 70 78 20 18 21 19 80 Share-based compensation 29 22 36 46 43 13 18 11 12 52 Other operating items 30 3 10 (4) 7 8 - 2 1 3 Adjusted EBITDA 208$ 255$ 345$ 551$ 589$ 88$ 198$ $68 - $76 $101 - $110 $381 - $477 Adjusted EBITDA Margin 49% 56% 63% 63% 71% 56% 78% 49% 54% 59% Other Operating Items Restructuring 28$ 3$ -$ -$ -$ -$ -$ -$ -$ -$ Other non-cash charges - - 3 - - 1 - - - - Non-Recurring Personnel-Related 2 - - - 7 6 - 2 1 3 Net Litigation Fee Reimbursement - - 8 (4) - 1 - - - - Total Other Operating Items 30$ 3$ 10$ (4)$ 7$ 8$ -$ 2$ 1$ 3$ Cash Flow Data: Net cash provided by operating activities 544$ 63$ Purchases of property and equipment (16) - Capitalized patent costs (55) (15) Free cash flow $ 474 $ 48 NOTE: Sums may not equal total due to rounding Full Year Three Months Ended Outlook

 
Non-GAAP Reconciliation 50©2026 InterDigital, Inc. All Rights Reserved. (In millions, except per share data) 2021 2022 2023 2024 2025 Q4'25 Q4'24 Q4'25 Q1'26 Full Year 2026 Net income attributable to InterDigital, Inc. 55$ 94$ 214$ 359$ 407$ 43$ 133$ $26 - $34 $57 - $66 $202 - $298 Share-based compensation 29 22 36 46 43 13 18 11 12 52 Acquisition related amortization 42 42 41 33 36 9 8 9 8 32 Other operating items 30 3 10 (4) 7 8 - 2 1 3 Other non-operating items (11) 13 (14) (2) - - - - - - Related income tax and noncontrolling interest effect of above items (26) (17) (17) (15) (18) (6) (5) (5) (4) (18) Adjustments to income taxes (2) (2) (16) (7) (10) - (3) - - - Non-GAAP net income 117$ 155$ 254$ 409$ 465$ 66$ 151$ $43 - $51 $74 - $83 $271 - $367 Weighted average diluted shares - GAAP 31.3 30.5 28.1 29.7 34.5 35.8 32.6 35.9 35.4 35.0 Less: Dilutive impact of the Convertible Notes - - 0.5 2.4 4.1 4.7 3.3 4.7 4.4 4.0 Weighted average diluted shares - Non-GAAP 31.3 30.5 27.6 27.3 30.4 31.1 29.2 31.2 31.0 31.0 Diluted EPS 1.77$ 3.07$ 7.62$ 12.07$ 11.80$ 1.20$ 4.09$ $0.72 - $0.95 $1.61 - $1.86 $5.77 - $8.51 Non-GAAP EPS 3.73$ 5.08$ 9.23$ 14.97$ 15.31$ 2.12$ 5.15$ $1.38 - $1.63 $2.39 - $2.68 $8.74 - $11.84 Other Operating Items Restructuring 28$ 3$ -$ -$ -$ -$ - -$ -$ -$ Other non-cash charges - - 3 - 1 1 - - - - Non-recurring personnel-related 2 - - - 6 6 - 2 1 3 Net litigation fee reimbursement - - 8 (4) 1 1 - - - - Total Other Operating Items 30$ 3$ 10$ (4)$ 7$ 8$ -$ 2$ 1$ 3$ Other Non-operating Items Fair value changes (9)$ 2$ (10)$ (2)$ -$ -$ - -$ -$ -$ Loss on extinguishment of debt - 11 - - - - - - - - Other non-cash charges (2) - (4) - - - - - - - Total Other Non-operating Items (11)$ 13$ (14)$ (2)$ -$ -$ -$ -$ -$ -$ NOTE: Sums may not equal total due to rounding Full Year Three Months Ended Outlook